The Company in a Nutshell
- Its three dining experiences reach different clientele from families to sport event driven customers.
- Management makes sure to establish long-term relationships with its franchisees to ensure steady growth.
- BPF can’t find a way to grow its sales anymore.
- We do not cover Boston Pizza at the moment
Date Reviewed | N/A |
Company Name | Boston Pizza Royalties Income Fund |
Symbol | BPF.UN.TO |
Sector | Consumer Discretionary |
Industry | Restaurants |
Beta | 1.563 |
PRO Rating | 2 |
Dividend Safety | 2 |
Business Model
Boston Pizza Royalties Income Fund (the Fund) is a Canada-based open-ended trust. The Fund operates through its subsidiaries, Boston Pizza Holdings Trust, Boston Pizza Holdings GP Inc. and Boston Pizza Holdings Limited Partnership, its 80% owned subsidiary Boston Pizza GP Inc. (BPGP), and its interest in Boston Pizza Royalties Limited Partnership. BPGP is the managing general partner of Royalties LP. The Fund indirectly, through Royalties LP, acquire the trademarks and trade names owned by Boston Pizza International Inc. (BPI), including 'Boston Pizza' and other similar related items, logos and designs (collectively, the 'BP Rights') used in connection with the operation of Boston Pizza restaurants in Canada. The Company operates approximately 372 Boston Pizza Restaurants in the Royalty Pool, of which approximately 370 were operating and open for business to the public.
Current price | 17.92 |
ROE | 10.55 % |
ROIC | 8.70 % |
Shareholder Yield | 0.15 % |
5-Yr Total Return | 47.65 % |
1-Yr Total Return | 21.35 % |
Next Earnings Date | 11-07-24 |
Latest Quarter Information
What the CEO said:
“Boston Pizza is pleased to announce positive second quarter sales despite high interest rates and inflation having created difficulties for the restaurant industry,” stated Jordan Holm, BPI’s President. “Boston Pizza’s ability to deliver solid financial performance in this economic environment speaks volumes about the dedication and resilience of our team. We remain optimistic about our future prospects and confident in our capacity to continue providing exceptional experiences to our guests.”
What we say:
06-04-2024. Boston Pizza Royalties Income Fund Q1’23 revenue was down a slight 0.98% to $11.8M vs. Q1’23. Distributable cash per unit was $0.344, up 3% in part attributable to fewer units outstanding. Same restaurant sales (SRS) were down 1% due to macroeconomic challenges faced by the full-service industry, mitigated by menu price increases. Franchise sales of restaurants in the Royalty Pool were $222M down $2.2M vs. Q1’23 primarily due to negative SRS. Payout Ratio was 96.8% vs. 91.6% in Q1’23. Despite administrative expenses growth of 11.5%, net income rose 27% from value gains on investments. Distributable cash increased 1.7%.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 1.50 % |
5-Yr EPS Growth | 0.00 % |
5-Yr Div Growth | -1.60 % |
Potential Risks
Debt/Equity | 0.30 |
Financial Debt to EBITDA (TTM) | 1.80 |
Current Ratio (Quarterly) | 3.45 |
Credit Score | 94 |
Dividend Growth Perspective
Dividend ($) | 1.356 |
Dividend Yield Fwd | 7.65 % |
Dividend Frequency | Monthly |
Average 5-Yr Yield | 7.55 % |
Payout Ratio (%) | 92.20 |
Cash Payout Ratio (%) | 74.30 |
DGR 1-Yr | 5.60 |
DGR 3-Yr | 40.05 |
DGR 5-Yr | -1.60 |
DGR Streak | |
Chowder Score | 6.05 |
Next DVD PMT | 09-27-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 378.00 M |
PE Ratio | 16.75 |
Fwd PE | 11.05 |
Price to Book Ratio | 1.35 |
DDM Valuation | N/A |
Average 5-Yr PE | 12.78 |
Value Score | 84 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.